Bearishness continue to prevail in domestic semi finish market during week 15 as prices moved down by INR 200-600/MT within a week. MS billet prices fell by INR 100-600/MT and sponge by INR 200-500/MT across major regions.
Subdued demand amid slowdown in construction activities and power cut by JSPL in central India, which affected 25 furnaces and increase in input cost by 10-20% were the major factors of price corrections.
Pig iron prices jumped up by INR 300-1,000/MT across major Indian regions.
Week 15 highlights
1. Current 78-80 FeM sponge iron prices prevailing in Durgapur at INR 12,000/MT (-500), Rourkela at INR 11,200/MT (-100), Raipur at INR 13,100/MT (-200) and Bellary at INR 12,350/MT (-200). Price change is weekly.
2. P-DRI prices hovered in the range of INR 11,000-13,000/MT in the market.
3. Billet price movements are INR 22,450/MT (-550) ex-Durgapur, INR 21,750/MT (-550) ex-Rourkela, INR 22,700/MT (-600) ex-Raipur, INR 24,550/MT (-150) ex-Mumbai and INR 25,500/MT (-500) ex-Hyderabad.
4. NMDC raised iron ore prices by INR 140-270/MT, DR-CLO prices by INR 270/MT and Baila lump & fines by INR 150/MT.
5. Raipur based pellet makers raised offers by INR 300/MT to INR 4,400-4,500/MT (basic).
6. Odisha HC yesterday allowed JSPL to lift iron ore stocks from Sarda mines.
7. Imported scrap offers boosted up by USD 10-20/MT to USD 250/MT, CFR India (Shredded scrap) due to bullish sentiments prevailing in global market.
Week 16 outlook
1. Looking at increase in raw material offers and poor long steel demand, semis offers may remain volatile by INR 200-500/MT.
2. Active buying in other nations may lead to surge in imported scrap offers. However, Indian buyers still seem to be reluctant in next week.
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